South Africa’s Bidvest has moved the Delhi high court against a pact signed between GVK group and others last year on Mumbai International Airport Ltd (MIAL) which it says violates its right of first refusal, Business Standard reported.
In October 2019, GVK Power & Infrastructure Ltd said it is raising Rs 7,614 crore ($1.07 billion) from three investors to increase its stake in the operator of the Mumbai airport, thwarting Adani Group’s attempt to seal the deal.
The Hyderabad-based group had said that units GVK Airport Developers Ltd and GVK Airport Holdings Ltd had signed definitive agreements with Abu Dhabi Investment Authority (ADIA), Canada's Public Sector Pension (PSP) Investment Board and Indian government-backed National Investment & Infrastructure Fund (NIIF).
The two units would use the money to repay debt and buy the stake held by Bidvest and Airports Company of South Africa (ACSA) in MIAL, GVK group had said.
The deal hasn’t materialised yet.
GVK Airport Holdings owns a 50.5% stake in MIAL while Bidvest and ACSA hold a total of 23.5% and the Airports Authority of India 26%.
GVK had offered to buy the two South African companies’ stake in February and March of 2019 by exercising its right of first refusal after billionaire Gautam Adani-led Adani Group offered to buy this stake.
Bidvest, which holds 13.5% stake in MIAL, accuses that the October 2019 agreement would lead to a change in the shareholding of MIAL, which violates its right of first refusal.